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Meryem ŞAHİN TÜTÜNCÜ Hacettepe University Department of Chemical Engineering KMÜ 310 QUALITY MANAGEMENT & PRODUCTIVITY

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  • Meryem ŞAHİN TÜTÜNCÜHacettepe University Department of Chemical Engineering

    KMÜ 310

    QUALITY MANAGEMENT & PRODUCTIVITY

  • Meryem ŞAHİN TÜTÜNCÜ

    Chemical Engineer (Hacettepe University Department of Chemical Engineering) Head of Quality Management System and Productivity Department to TÜBİTAK Experiences of Quality Management Systems, service management and

    information security systems (CMMI, ISO 9001, ISO 27001, ISO 20000, AQAP-150, AQAP-160, AS 9100/9006, IEEE 12207, ITIL) for 21 year’s.

    Experiences of Perception Survey design, implementation and analysis CMMI L-3 (TÜBİTAK Space Technologies Research Institute) and CMMI L-4

    (TÜBİTAK Software and Data Management Institute) Process Improvement Projects as Project Manager in TÜBİTAK.

    10 year’s experience in defense systems domain. 2 year’s experience in space domain. Management of CMMI Level-3 (Defence Company) Improvement Projects,

    experience in CMMI Class A, Class B Appraisals as CMMI Level-3 SCAMPI A Appraisal Team Member, Ownership of CMMI processes - Product and Process Quality Assurance.

    [email protected]

    [email protected]

    mailto:[email protected]:[email protected]

  • What is Expectation? (Iterative)

    33

    1 2 3

    Iterating allows you

    to move from vague

    idea to realization

    3

  • What is Expectation? (Incremental)

    4

    1 2 3

    But, incrementing

    calls for a fully

    formed idea

    4

  • What is Expectation?

    5

  • Lecture OutlineChapter 1• Quality Concepts• History of Quality Methodology• Quality GurusChapter 2• Evolution of Quality• Quality Management• Deming’s Principles• Total Quality ManagementChapter 3

    • Process Approach• Process Improvement• Tools and TechniquesChapter 4

    • Quality and ProductivityChapter 5

    • Cost of QualityChapter 6

    • Quality Awards and Quality Standards6

  • 1st Edition, 1982 7

  • OthersNicholas, J., 1998, Competitive Manufacturing Management, Irwin/McGraw Hill, USA

    Kalite Yönetimi Kuram, İlkeler, Uygulamalar Prof. Dr. Hasan Şimşek Seçkin Yayıncılık, Mart 2010

    Juran's Quality Handbook, Sixth Edition

    Quality Management for Organizational Excellence, Goetsch, D. L. ve Davis, S. B., 2014, 7th Edition, Pearson, Great Britain.

    8

  • Chapter 1

    What is Quality?

    Meaning of Quality

    Dimensions of Quality

    History of Quality Methodology

    Quality Gurus

    9

  • What is Quality?

    10

  • What does the word “quality” mean to you?

    • Think about your past experiences staying at various hotels. Did you stay at a “quality” hotel? What about the experience made it a “quality” experience for you?

    • Think about a product you bought. How can you define its “quality”?

    11

  • What does the word “quality” mean?

    https://www.facebook.com/PorscheCentreWilloughby/videos/1126756607406845/

    12

  • What does the word “quality” mean?

    https://www.youtube.com/watch?v=RxPZh4AnWyk

    13

  • What is Quality?

    Aristoteles (Aristo) (BS 384– BS 322) Ancient Greek philosopher.

  • What is Quality?

  • What is Quality?

  • 17

  • What is Quality?• Conformance to specifications (British Defense Industries

    Quality Assurance Panel)

    • Conformance to requirements (Philip Crosby)• Fitness for purpose or use (Juran)• A predictable degree of uniformity and dependability, at

    low cost and suited to the market (Edward Deming)• Synonymous with customer needs and expectations

    (R J Mortiboys)

    • Meeting the (stated) requirements of the customer- nowand in the future (Mike Robinson)

    • The total composite product and service characteristicsof marketing, engineering, manufacturing andmaintenance through which the product and service inuse will meet the expectations by the customer (ArmandFeigenbaum)

    18

  • What is Quality?• “The degree to which a system, component, or process meets

    (1) specified requirements, and

    (2) customer or users needs or expectations” (IEEE)

    • The totality of features and characteristics of a product orservice that bears on its ability to satisfy stated or impliedneeds” (ISO 8402)

    • Degree to which a set of inherent characteristics fulfilsrequirements (ISO 9000:2015)

    19

  • Defining Quality

    The totality of features and characteristics of a product or service that bears on its ability to

    satisfy stated or implied needs

    American Society for Quality

    20

  • Different Views

    User-based: better performance, morefeatures

    Manufacturing-based: conformance tostandards, making it right the first time

    Product-based: specific and measurableattributes of the product

    21

  • Implications of Quality

    1. Company reputation

    Perception of new products

    Employment practices

    Supplier relations

    2. Product liability

    Reduce risk

    3. Global implications

    Improved ability to compete

    22

  • Key Dimensions of Quality

    Performance

    Features

    Reliability

    Conformance

    Durability

    Serviceability

    Aesthetics

    Perceived quality

    Value

    23

  • Of the many meanings of the word “quality,” two are of critical importance to managing for quality:

    1. “Quality” means those features of products which meet customer needs andthereby provide customer satisfaction. In this sense, the meaning of quality isoriented to income. The purpose of such higher quality is to provide greater customersatisfaction and, one hopes, to increase income.

    However, providing more and/or better quality features usually requires an investment and hence usually involves increases in costs. Higher quality in this sense usually “costs more.”

    2. “Quality” means freedom from deficiencies—freedom from errors that requiredoing work over again (rework) or that result in field failures, customerdissatisfaction, customer claims, and so on. In this sense, the meaning of quality isoriented to costs, and higher quality usually “costs less.”

    Meaning of Quality

    24

  • Meaning of Quality

    Webster’s Dictionary degree of excellence of a thing

    American Society for Quality totality of features and characteristics that

    satisfy needs

    Producer’s and Consumer’s Perspective

    25

  • Meaning of Quality:Producer’s Perspective

    Quality of Conformance

    Making sure a product or service is produced according to design

    if new tires do not conform to specifications, they wobble (tereddüt etmek/bocalamak)

    if a hotel room is not clean when a guest checks in, the hotel is not functioning according to specifications of its design

    26

  • Meaning of Quality:Consumer’s Perspective

    Fitness for use how well product or service

    does what it is supposed to

    Quality of design designing quality

    characteristics into a product or service

    A Mercedes and a Ford are equally “fit for use,” but with different design dimensions

    3-27

  • Meaning of Quality:A Final Perspective

    Consumer’s and producer’s perspectives depend on each other

    Consumer’s perspective: «PRICE»

    Producer’s perspective : «COST»

    Consumer’s view must dominate

    28

  • Fitness for

    Consumer Use

    Producer’s Perspective Consumer’s Perspective

    Quality of Conformance

    • Conformance to

    specifications

    • Cost

    Quality of Design

    • Quality characteristics

    • Price

    MarketingProduction

    Meaning of Quality

    Meaning of Quality

    29

  • Dimensions of Quality:Manufactured Products

    Performance basic operating characteristics of a product; how well

    a car is handled or its gas mileage

    Features “extra” items added to basic features, such as a

    stereo CD or a leather interior in a car

    Reliabilityprobability that a product will operate properly

    within an expected time frame; that is, a TV will work without repair for about seven years

    30

  • Conformancedegree to which a product meets pre–established

    standards

    Durabilityhow long product lasts before replacement

    Serviceabilityease of getting repairs, speed of repairs, courtesy and

    competence of repair person

    Dimensions of Quality:Manufactured Products (cont.)

    31

  • Aestheticshow a product looks, feels, sounds, smells, or tastes

    Safety assurance that customer will not suffer injury or

    harm from a product; an especially important consideration for automobiles

    Perceptions subjective perceptions based on brand name,

    advertising, and the like

    Dimensions of Quality:Manufactured Products (cont.)

    32

  • 33

    Understanding

    Reliability / Consistency

    CommunicationCredibility

    Security

    Responsiveness

    Competence

    Courtesy

    Accessibility

    Dimensions of Quality For Services

    Completeness

  • 34

    Dimensions of Quality For Services

  • Dimensions of Quality: Service

    Time and TimelinessHow long must a customer wait for service, and is it

    completed on time? Is an overnight package delivered overnight?

    Completeness Is everything customer asked for provided? Is a mail order from a catalogue company complete

    when delivered?

    35

  • Dimensions of Quality: Service (cont.)

    CourtesyHow are customers treated by employees?Are catalogue phone operators nice and are their voices

    pleasant?

    Consistency Is the same level of service provided to each customer

    each time? Is your newspaper delivered on time every morning?

    36

  • Accessibility and convenienceHow easy is it to obtain service?Does a service representative answer you calls quickly?

    Accuracy Is the service performed right every time? Is your bank or credit card statement correct every month?

    ResponsivenessHow well does the company react to unusual situations?How well is a telephone operator able to respond to a

    customer’s questions?

    Dimensions of Quality: Service (cont.)

    37

  • Dimensions of Quality

    1. PerformanceWill the product/service do the intended job?

    2. Reliability

    How often does the product/service fail?

    3. Durability

    How long does the product/service last?

    4. Serviceability

    How easy to repair the product / to solve the problems in service?

    38

  • Dimensions of Quality5. Aesthetics

    What does the product/service look / smell / sound/feel like?

    6. Features

    What does the product do/ service give?

    7. Perceived Quality

    What is the reputation of the company or its products/services?

    8. Conformance to Standards

    Is the product/service made exactly as the designer/standard intended?

    39

  • Quality in different areas of society

    Area Examples

    Airlines On-time, comfortable, low-cost service

    Health CareCorrect diagnosis, minimum wait time, lower cost, security

    Food Services Good product, fast delivery, good environment

    Postal Services fast delivery, correct delivery, cost containment

    AcademiaProper preparation for future, on-time knowledge delivery

    Consumer Products Properly made, defect-free, cost effective

    Insurance Payoff on time, reasonable cost

    Military Rapid deployment, decreased wages, no graft

    Automotive Defect-free

    Communications Clearer, faster, cheaper service40

  • Why Quality is Important?

    No quality, no salesNo sale, no profit

    No profit, no jobs

  • 42

    Importance of Quality

    • Costs & market share

    • Company’s reputation

    • Product liability

    • International implications

    Increased

    Profits

    Lower Costs

    Productivity

    Rework/Scrap

    Warranty

    Market Gains

    Reputation

    Volume

    Price

    Improved

    Quality

  • 43

    History of Quality Methodology

    • Reach back into antiquity, especially into China,India, Greece and the Roman Empire : skilledcrafstmanship.

    • Industrial Revolution (18th century): need for moreconsistent products that are mass-produced andneeded to be interchangeable. Rise of inspectionafter manufacturing completed and separate qualitydepartments.

  • 44

    History of Quality Methodology

    • Science of modern quality methodology started by R.A. Fisher perfected scientific shortcuts for shiftingthrough mountains of data to spot key cause-effectrelationships to speed up development of cropgrowing methods.

    • Statistical methods at Bell Laboratories: W. A.Shewhart transformed Fisher’s methods into qualitycontrol discipline for factories (inspired W.E. Demingand J. M. Juran); Control Charts developed by W. A.Shewhart; Acceptance sampling methodologydeveloped by H. F. Dodge and H. G. Romig

  • 45

    History of Quality Methodology

    • World War II: Acceptance of statistical quality-control concepts in manufacturing industries (moresophisticated weapons demanded more carefulproduction and reliability); The American Society forQuality Control formed (1946).

    • Quality in Japan: W.E. Deming invited to Japan togive lectures; G. Taguchi developed “Taguchimethod” for scientific design of experiments; TheJapanese Union of Scientists and Engineers (JUSE)established “Deming Price” (1951); The QualityControl Circle concept is introduced by K. Ishikawa(1960).

  • 46

    History of Quality Methodology

    • Quality awareness in U.S. manufacturing industryduring 1980s: “Total Quality Management”; Qualitycontrol started to be used as a mangement tool.

    • Malcolm Baldrige National Quality Award (1987)

    • International Standard Organization’s (ISO) 9000series of standards: in 1980s Western Europe beganto use; interest increase in US industry in 1990s;Became widely accepted today: necessaryrequirement to world-wide distribution of productand a significant competitive advantage.

  • History of Quality Methodology

    • Quality in service industries, government, health care, and education

    • Current and future challenge: keep progress in quality management alive

    • To sum up: A gradual transition

    Statistical Quality Control

    Quality Assurance

    Quality Management

    47

  • Quality GurusWalter Shewart

    In 1920s, developed control charts Introduced the term “quality assurance”

    W. Edwards DemingDeveloped courses during World War II to teach

    statistical quality-control techniques to engineersand executives of companies that were militarysuppliers

    After the war, began teaching statistical qualitycontrol to Japanese companies

    Joseph M. Juran Followed Deming to Japan in 1954 Focused on strategic quality planning

    48

  • Armand V. Feigenbaum In 1951, introduced concepts of total quality control

    and continuous quality improvement

    Philip Crosby In 1979, emphasized that costs of poor quality far

    outweigh the cost of preventing poor quality In 1984, defined absolutes of quality management—

    conformance to requirements, prevention, and “zerodefects”

    Kaoru IshikawaPromoted use of quality circlesDeveloped “fishbone” diagramEmphasized importance of internal customer

    Quality Gurus (cont.)

    49

  • The Quality Gurus Edward Deming

    1900-1993

    1986

    Quality is “uniformity and dependability”

    Focus on SPC and statistical tools

    “14 Points” for management

    PDCA method

    50

  • The Quality Gurus Joseph Juran

    1904 - 2008

    1951

    Quality is “fitness for use”

    Pareto Principle

    Cost of Quality

    General management approach as well as statistics

    51

  • W. Edwards DEMINGThe Einstein of Quality

    52

  • Chapter 2

    Evaluation of Quality

    Deming’s Principles

    Total Quality Management

    53

  • 1. Step

    Quality Control

    Inspection

    Poor quality consciousness

    1920s

    2. Step

    Quality Assurance

    Process Improvement

    The participation of employees

    1960s

    3. Step

    Quality Management

    Process capability andproductivity

    1980s

    4. Step

    Excellence

    New cultural direction

    2000s

    TOPLAM KALİTE YÖNETİMİ

    Evolution of Quality

    54

  • 55

    Evolution of Quality Control and Management

    Quality control by inspection

    Statistical quality control

    Total quality control

    Total quality management

    Six sigma

    ISO 9000 standard series

    Scientific approaches such as statistical process control, total productive maintenance, quality function deployment

    Adapted from: Park (2003)

    1930 1950 1990

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  • Quality Management

    Quality Management

    Quality Planning Quality Assurance Quality Control

    Criteria driven Prevention driven Inspection driven

    56

  • Quality Management Components

    Quality Planning It identifies the standards and determines how to satisfy

    those standards It lays out the roles and responsibilities, resources,

    procedures, and processes to be utilized for quality controland quality assurance

    Quality Assurance It is the review to ensure aligning with the quality

    standards. An assessment will be provided herePlanned and systematic quality activitiesProvide the confidence that the standards will be met

    57

  • Quality Control It addresses the assessment conducted during Quality

    Assurance for corrective actions

    Measure specific results to determine that they match thestandards

    Use of Statistical Process Control (SPC) : a methodology formonitoring a process to identify special causes of variationand signal the need to take corrective action whenappropriate

    SPC relies on control charts

    Quality Management Components

    58

  • 59

    Quality Planning

  • 60

    Quality Control

  • 61

    Quality Assurance

  • History

    62

  • 63

    Quality of products

    Reduction of cost

    Reduction in time-to-market

    Quality of services

    Innovation

    Environmental, social and

    individual responsibility

    Products

    Processes

    Services

    Customers/stakeholders

    Environment

    Society

    Change of Emphasis in Total Quality

  • https://www.youtube.com/watch?v=mLRnqC69c9Q

    https://www.youtube.com/watch?v=OXYZENDzvoc

    https://www.youtube.com/watch?v=tDu47czfwiI

    64

  • https://www.youtube.com/watch?v=tsF-8u-V4j4

    65

  • 66

    As J.M. Juran and W.E. Deming have maintained since 1950’s

    “At least 85% of an organization’s failures are thefault of management-controlled systems. Workerscan control fewer than 15% of the problems. Inquality leadership, the focus is on constant andrigorous improvement of every system, not onblaming individuals for problems.”

    Source: P.R. Scholtes, Total Quality Management, Peter Scholtes, Inc., 1991, 1-12.

    Continually Improving Processes and Systems

  • Deming’s 14 Principles

    1. “Create Constancy of Purpose” Define the problems of today and the future Allocate resources for long-term planning Allocate resources for research and education Constantly improve design of product and service

    2. “Adopt A New Philosophy” Quality costs less not more Superstitious learning The call for major change Stop looking at your competition and look at your

    customer instead

    https://www.youtube.com/watch?v=gpBUZZnoZTI

    67

  • Deming’s 14 Principles

    3. “Cease Dependence On Inspection For Quality” Quality does not come from inspection Mass inspection is unreliable, costly, and ineffective Inspectors fail to agree with each other Inspection should be used to collect data for process

    control

    4. “End Proactive Awarding Of Business Based On PriceAlone” Price alone has no meaning Change focus from lowest inital cost to lowest cost Work toward a single source and long term

    relationship Establish a mutual confidence and aid between

    purchaser and vendor

    68

  • Deming’s 14 Principles

    5. “Improve Every Process Constantly / Forever” Quality starts qith the intend of management Teamwork in design is fundamental Forever continue to reduce waste and continue to

    improve Putting out fires is not improvement of the process

    6. “Institute Training” Management must provide the setting where

    workers can be succesful Management must remove the inhibitors to good

    work Management needs an appreciation of variation This is management’s new role

    69

  • Deming’s 14 Principles

    7. “Adopt And Institute Leadership” Remove barriers to pride of workmanship Know the work they supervise Know the difference between special and common

    cause of variation

    8. “Drive Out Fear” The common denominator of fear Fear of knowledge Performance appraisals Management by fear or numbers

    70

  • Deming’s 14 Principles

    9. “Break Barriers Between Staff Areas” Know your internal suppliers and customers Promote team work

    10. “Eliminate Slogans, Exhortations And Targets” They generate frustration and resentment Use posters that explain what management is doing

    to improve the work environment

    71

  • Deming’s 14 Principles

    11. “Eliminate Numerical Quotas” They impede quality They reduce production The person’s job becomes meeting a quota

    12. “Remove Barriers That Rob Pride Of Workmanship” Performance appraisal systems Production rates Financial management systems Allow people to take pride in their workmanship

    72

  • Deming’s 14 Principles

    13. “Institute Programs For Education And Self Improvement” Commitment to lifelong employment Work with higher education needs Develop team building skills

    14. “Put Everybody In The Company To Work For This Transformation” Struggle over the 14 points Take pride in new philosophy Include the critical mass of people in the change

    73

  • Deming’s Cycle

    Act

    A

    P

    D

    C

    Plan

    Do

    Check

    A

    P

    D

    C

    Plan

    Do

    Check

    A

    P

    D

    C

    What are we trying toaccomplish?

    How will we know that achange is an improvement?

    AIM

    MEASURE

    What change can we make thatwill result in improvement?

    Selecting Change

    74

  • Deming Wheel: PDCA Cycle

    1. PlanIdentify

    problem and

    develop plan

    for

    improvement.

    2. DoImplement plan

    on a test basis.

    3. Study/CheckAssess plan; is it

    working?

    4. ActInstitutionalize

    improvement;

    continue cycle.

    75

  • Deming’s Plan-Do-Check-Act

    "Continuous improvement is better than delayed perfection." - Mark Twain

    76

  • Total Quality Management

    (TQM)

    77

  • 78

    Total Quality Management (TQM)

    Started in the early 1980s, Deming/Juran philosophy as the focal point

    Emphasis on widespread training, quality awareness

    Training often turned over to HR function

    Not enough emphasis on quality control and improvement tools, poor follow-through, no project-by-project implementation strategy

    TQM has been unsuccessful in many companies

  • 79

    The Juran Trilogy

    1. Planning

    2. Control

    3. Improvement

    These three processes are interrelated

    Control versus breakthrough

    Project-by-project improvement

    Emphasizes a more strategic and planning oriented approach to quality than does Deming

  • Total Quality Management1. The primary focus is on process improvement

    2. Most of the variation in a process is due to the system and not the individual

    3. Teamwork is an integral part of a quality management organization

    4. Customer satisfaction is a primary organizational goal

    5. Organizational transformation must occur in order to implement quality management

    6. Fear must be removed from organizations

    7. Higher quality costs less not more but it requires an investment in training

    80

  • 81

    Planned, aligned, customer focused efforts by all

    Many employees work towards company objectives

    All employees work towards their own/departmental objectives

    There are a few employees trying to work towards their own/departmental objectives

    * *

    * *

    4

    2

    3

    1

    Total Quality

    Source: Ahmet Tunçay, General Secretary of Kalder Ankara Branch, 2007.

  • 82

    Key Principles of TQM

    • Devotion to customer satisfaction • Continuous decrease in undesirable variation • KAIZEN: continuous improvement • Teamwork • System and technology development for competition • Planning for future • Supplier improvement and participation • Leadership • Communication and mutual respect • Continuous education • Measurement and statistics • Employee involvement and empowerment • Scientific approach to problem solving

  • 83

    TQM Organization

    Lean

    Cross-functional teams

    Leadership

    Facilitation / support

    Employee involvement and empowerment

  • Total Quality ManagementCommitment to quality throughout organization

    Principles of TQM

    Customer-oriented

    Leadership

    Strategic planning

    Employee responsibility

    Continuous improvement

    Cooperation

    Statistical methods

    Training and education

    84

  • TQM and…

    … Partnering a relationship between a company and its

    supplier based on mutual quality standards

    … Customers system must measure customer satisfaction

    … Information Technology infrastructure of hardware, networks, and

    software necessary to support a quality program

    85

  • Quality Improvement and Role of Employees

    Participative problem solving

    employees involved inquality management

    every employee hasundergone extensivetraining to providequality service toDisney’s guests

    86

  • PresentationImplementation

    Monitoring

    SolutionProblem results

    Problem AnalysisCause and effect

    Data collection and

    analysis

    Problem

    IdentificationList alternatives

    Consensus

    Brainstorming

    TrainingGroup processes

    Data collection

    Problem analysis

    Organization8-10 members

    Same area

    Supervisor/moderator

    Quality Circle

    87

  • Strategic Implications of TQM

    Strong leadership Goals, vision, or mission Operational plans and policies Mechanism for feedback

    88

  • TQM in Service Companies

    Principles of TQM apply equally well to servicesand manufacturing

    Services and manufacturing companies havesimilar inputs but different processes andoutputs

    Services tend to be labor intensive Service defects are not always easy to measure

    because service output is not usually a tangibleitem

    89

  • Quality Attributes in Service

    Benchmark “best” level of quality

    achievement one company or companies seek to achieve

    Timelinesshow quickly a service is

    provided

    “quickest, friendliest, most

    accurate service

    available.”

    3-90

  • TQM

    Encompasses entire organization, from supplier to customer

    Stresses a commitment by management to have a continuing, companywide drive toward excellence in

    all aspects of products and services that are important to the customer

    91

  • Seven Concepts of TQM

    1. Continuous Improvement2. Six Sigma3. Employee Empowerment4. Benchmarking5. Just-in-time (JIT)6. Taguchi Concepts7. Knowledge of TQM Tools

    92

  • Continuous Improvement

    "Continuous improvement is better than delayed perfection." - Mark Twain

    93

  • Continuous Improvement

    Represents continual improvement of all processes

    Involves all operations and work centers including suppliers and customers

    People, Equipment, Materials, Procedures

    94

  • Quality Improvement

    Traditional

    Time

    Qu

    alit

    y

    95

  • Continuous Improvement Philosophy

    1. KAIZEN (KAI:Değişim/Gelişim ZEN:Daha İyiye): Japanese term for continuous improvement. step-by-step improvement of business processes.

    2. PDCA: Plan-do-check-act as defined by Deming.

    Plan Do

    Act Check

    3. Benchmarking : what do top performers do?

    96

  • Tools used for continuous improvement

    1. Process flowchart

    97

  • Tools used for continuous improvement

    2. Run Chart

    Performance

    Time

    98

  • Tools used for continuous improvement

    3. Control Charts

    Performance Metric

    Time

    99

  • What is a Control Chart?

    A control chart is a presentation of data in which thecontrol values are plotted against time

    Control charts have a central line, upper and lowerwarning limits, and upper and lower action limits

    Immediate visualisation of problems

    100

  • Control chart-illustration of construction

    0 10 20 30 40 50 60 70 80 90 1000.8

    0.9

    1.0

    1.1

    1.2

    1.3

    X-chart Copper

    Warning limitAction limit

    Central line

    Control value

    101

  • When to Take Action?

    • One point plots outside the Action Limits

    • Two consecutive points plots between the Warningand Action Limits

    • Eight consecutive points plot on one side of theCenter Line

    • Six points plots steadily increasing or decreasing

    • When an unusual or nonrandom pattern is observed

    102

  • When to Take Action?

    -4

    -3

    -2

    -1

    0

    1

    2

    3

    4

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

    Month

    103

  • Tools used for continuous improvement

    4. Cause and effect diagram (fishbone)

    Environment

    Machine Man

    Method Material

    104

  • Tools used for continuous improvement

    5. Check sheet

    Item A B C D E F G

    -------

    -------

    -------

    √ √ √

    √ √

    √ √

    √ √

    √ √ √

    √ √

    105

  • Tools used for continuous improvement

    6. Histogram

    Frequency

    106

  • Tools used for continuous improvement

    7. Pareto Analysis

    A B C D E F

    Fre

    quen

    cy

    Per

    centa

    ge

    50%

    100%

    0%

    75%

    25%10

    20

    30

    40

    50

    60

    107

  • Six Sigma

    108

  • Six Sigma

    Two meanings

    Statistical definition of a process that is99.9997% capable, 3.4 defects per millionopportunities (DPMO)

    A program designed to reduce defects, lowercosts, and improve customer satisfaction

    109

  • Two meanings

    Statistical definition of a process that is 99.9997% capable, 3.4 defects per million opportunities (DPMO)

    A program designed to reduce defects, lower costs, and improve customer satisfaction

    Six Sigma

    Mean

    Lower limits Upper limits

    3.4 defects/million

    ±6

    2,700 defects/million

    ±3

    Figure 6.4

    110

  • Six Sigma Management1. Define: The problem to be solved needs to be defined along with

    the costs, benefits of the project, and the impact on the customer.2. Measure: Definitions for each Critical-To-Quality (CTQ)

    characteristic must be developed. In addition, the measurementprocedure must be verified so that it is consistent over repeatedmeasurements.

    3. Analyze: The root causes why defects can occur need to bedetermined along with the variables in the process that cause thedefects to occur. Data are collected to determine the underlyingvalue for each process variable, often using control charts.

    4. Improve: The importance of each process variable on the CTQcharacteristic are studied using designed experiments. Theobjective is to determine the best level for each variable that can bemaintained in the long run.

    5. Control: The objective is to maintain the gains that have been madewith a revised process in the long term by avoiding potentialproblems that can occur when a process is changed.

    111

  • Six Sigma

    A process for developing and delivering nearperfect products and services

    Measure of how much a process deviatesfrom perfection

    3.4 defects per million opportunities

    Champion

    an executive responsible for project success

    112

  • 3-113

    Black Belts and Green Belts

    Black Belt– project leader

    Master Black Belt– a teacher and mentor for Black Belts

    Green Belts– project team members

  • 3.4 DPMO

    67,000 DPMO

    cost = 25% of

    sales

    DEFINE CONTROLIMPROVEANALYZEMEASURE

    Six Sigma: DMAIC

    114

  • Employee Empowerment

    Getting employees involved in product and process improvements

    85% of quality problems are due

    to process and material

    Techniques

    Build communication networks that include employees

    Develop open, supportive supervisors

    Move responsibility to employees

    Build a high-morale organization

    Create formal team structures115

  • Benchmarking

    Selecting best practices to use as a standard for performance

    1. Determine what to benchmark

    2. Form a benchmark team

    3. Identify benchmarking partners

    4. Collect and analyze benchmarking information

    5. Take action to match or exceed the benchmark

    116

  • Just-in-Time (JIT)

    Relationship to quality:

    JIT cuts the cost of quality

    JIT improves quality

    Better quality means less inventory and better, easier-to-employ JIT system

    117

  • Just-in-Time (JIT)

    ‘Pull’ system of production scheduling including supply management

    Production only when signaled

    Allows reduced inventory levels

    Inventory costs money and hides process and material problems

    Encourages improved process and product quality

    118

  • Just-In-Time (JIT) Example

    ScrapUnreliable Vendors

    Capacity Imbalances

    Work in process inventory level

    (hides problems)

    119

  • Just-In-Time (JIT) ExampleReducing inventory reveals problems so they can be solved

    ScrapUnreliable Vendors

    Capacity Imbalances

    120

  • Taguchi’s Contribution

    In the early 1980s, Prof. Genechi Taguchi introduced his approach to using experimentaldesign for;

    1) Designing products or processes so that they are robust to environmental conditions.

    2) Designing/developing products so that they are robust to component variation.

    3) Minimizing variation around a target value.

    By robust, we mean that the product or process performs consistently on target and is relatively insensitive to factors that are difficult to control.

    3-121

  • Taguchi Philosophy

    3 stages in a product’s (or process’s)

    development:

    1) System design: uses scientific and

    engineering principles to determine

    the basic configuration.

    2) Parameter design: specific values for the system parameters are determined.

    3) Tolerance design: determine the best tolerances for the parameters.

    3-122

  • Taguchi Philosophy

    Recommends: statistical experimental

    design methods have to be used for

    quality improvement, particularly

    during parameter and tolerance

    design phases.

    Key component: reduce the variability around the target (nominal) value.

    3-123

  • Taguchi Concepts

    Engineering and experimental design methods to improve product and process design

    Identify key component and process variables affecting product variation

    Taguchi Concepts

    Quality robustness

    Quality loss function

    Target-oriented quality

    124

  • Quality Robustness

    Ability to produce products uniformly in adverse manufacturing and environmental conditions

    Remove the effects of adverse conditions

    Small variations in materials and process do not destroy product quality

  • Quality Loss Function Shows that costs increase as the product

    moves away from what the customer wants

    Costs include customer dissatisfaction, warranty and service, internal scrap and repair, and costs to society

    Traditional conformance specifications are too simplistic

    126

  • Unacceptable

    Poor

    Good

    Best

    Fair

    Quality Loss Function

    High loss

    Loss (to producing organization, customer, and society)

    Low loss

    Frequency

    Lower Target Upper

    Specification

    Target-oriented quality yields more product in the “best” category

    Target-oriented quality brings product toward the target value

    Conformance-oriented quality keeps products within 3 standard deviations

    Figure 6.5

    L = D2Cwhere

    L = loss to society

    D = distance from target value

    C = cost of deviation

    127

  • 128

    Use of Simple Scientific Tools for TQM

    1. Pareto analysis

    2. Flowcharts

    3. Check sheets

    4. Histograms

    5. Scatter diagrams

    6. Control charts

    7. Fishbone diagram

  • Chapter 3

    • Process Approach

    • Process Improvement

    • Tools and Techniques

    129

  • Process Approach

    130

  • What is the meaning of Process?

    131

    A process is a set of activities that interact to achieve a result.

  • 132

    Statistical Methods for Quality

  • 133

  • 134

  • 135

    What is the Process Approach?

  • 136

  • 137

  • 138

  • 139

    Risk-based thinking...

  • 140

    PDCA...

  • 141

  • 142

    The Process Approach in ISO 9001:2015

  • 143

    The Process Approach in ISO 9001:2015

  • 144

    The Process Approach in ISO 9001:2015

  • 145

    The Process Approach in ISO 9001:2015

  • 146

    The Process Approach in ISO 9001:2015

  • 147

    The Process Approach in ISO 9001:2015

  • 148

    The Process Approach in ISO 9001:2015

  • 149

    The Process Approach in ISO 9001:2015

  • 150

    The Process Approach in ISO 9001:2015

  • 151

    The Process Approach in ISO 9001:2015

  • 152

    The Process Approach in ISO 9001:2015

  • Tools & Techniques

    153

  • Quality Improvement Tools

    154

  • Quality Improvement Tools

    155

  • Brainstorming

    Everyone participates

    Go round robin and only one person speaks at a time

    No discussion of ideas

    There is no such thing as a dumb idea

    Pass when necessary

    Use “BIG” yellow sticky notes and write only 1 idea per sticky note

    One person assigned as scribe

    For a complicated issue, the session could last 30-45 minutes…or longer!

    156

  • Use a Nominal Group Technique

    To focus brainstorming results

    An internet search on

    “Nominal Group Technique”

    Will yield many examples and methods

    to apply this technique

    Nominal Group Technique

    157

  • Flow Diagrams

    Build a common understanding of a whole process

    Develop process thinking

    Improve a process

    Standardize a process

    Why is flow diagramming helpful?

    158

  • Understand the root causes of a problemBEFORE you put a “solution” into place

    Investigate the Root Causes

    159

  • Cause & Effect Diagrams

    Identify and display many different possible causes for a problem

    See the relationships between the many causes

    Helps determine which data to collect

    Why are cause and effect diagrams helpful?

    160

  • Cause & Effect Diagrams

    Bones should not include solutions

    Bones should not include lists of process steps

    Bones include the possible causes

    Better understand the current

    situation…..

    Now begin to develop a change.

    161

  • Clearly define the focused problem

    Use brainstorming to identify possible causes

    Sort causes into reasonable clusters (no less than 3, not more than 6)

    Label the clusters (consider people, policies, procedures, materials if you have not already identified labels)

    Develop and arrange bones in each cluster

    Check the logical validity of each causal chain

    How To Construct Cause & Effect Diagrams

    162

  • The 7 Basic Quality Tools for Process Improvement

    http://asq.org/learn-about-quality/seven-basic-quality-tools/overview/overview.html

    3-163

  • Seven Quality Control Tools

    Pareto Analysis Flow Chart Check Sheet Histogram

    Scatter Diagram SPC Chart Cause-and-Effect

    Diagram

    Quality pros have many names for these seven basic tools ofquality, first emphasized by Kaoru Ishikawa, a professor ofengineering at Tokyo University and the father of “qualitycircles.”

    164

    http://asq.org/about-asq/who-we-are/bio_ishikawa.html

  • Cause-and-effect diagram (also called Ishikawa or fishbone chart):Identifies many possible causes for an effect or problem and sorts ideasinto useful categories.Check sheet: A structured, prepared form for collecting and analyzingdata; a generic tool that can be adapted for a wide variety of purposes.Control charts: Graphs used to study how a process changes over time.Histogram: The most commonly used graph for showing frequencydistributions, or how often each different value in a set of data occurs.Pareto chart: Shows on a bar graph which factors are more significant.Scatter diagram: Graphs pairs of numerical data, one variable on eachaxis, to look for a relationship.Stratification: A technique that separates data gathered from a variety ofsources so that patterns can be seen (some lists replace “stratification”with “flowchart” or “run chart”).

    • Excerpted from Nancy R. Tague’s The Quality Toolbox, Second Edition, ASQQuality Press, 2005, page 15.

    Seven Quality Control Tools

    3-165

    http://asq.org/learn-about-quality/cause-analysis-tools/overview/fishbone.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/check-sheet.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/control-chart.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/histogram.htmlhttp://asq.org/learn-about-quality/cause-analysis-tools/overview/pareto.htmlhttp://asq.org/learn-about-quality/cause-analysis-tools/overview/scatter.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/stratification.htmlhttp://asq.org/quality-press/display-item/index.html?item=H1224

  • Tools of TQM

    Tools for Generating Ideas

    Check sheets

    Scatter diagrams

    Cause-and-effect diagrams

    Tools to Organize the Data

    Pareto charts

    Flowcharts

    166

  • Tools of TQM

    Tools for Identifying Problems

    Histogram

    Statistical process control chart

    167

  • /

    /

    / / /// /

    // ///

    // ////

    ///

    //

    /

    Hour

    Defect 1 2 3 4 5 6 7 8

    A

    B

    C

    /

    /

    //

    /

    Seven Tools of TQM

    Check Sheet: An organized method of recording data

    168

  • Seven Tools of TQM

    Scatter Diagram: A graph of the value of one variable vs. another variable

    Absenteeism

    Pro

    du

    cti

    vit

    y

    169

  • Seven Tools of TQM

    Cause-and-Effect Diagram: A tool that identifies process elements (causes) that might effect an outcome

    Cause

    Materials Methods

    Manpower Machinery

    Effect

    170

  • Seven Tools of TQM

    Pareto Chart: A graph to identify and plot problems or defects in descending order of frequency

    Fre

    qu

    en

    cy

    Pe

    rce

    nt

    A B C D E

    171

  • Seven Tools of TQM

    Flowchart (Process Diagram): A chart that describes the steps in a process

    172

  • Seven Tools of TQM

    Histogram: A distribution showing the frequency of occurrences of a variable

    Distribution

    Repair time (minutes)

    Fre

    qu

    en

    cy

    173

  • Seven Tools of TQM

    Statistical Process Control Chart: A chart with time on the horizontal axis to plot values of a statistic

    Upper control limit

    Target value

    Lower control limit

    Time

    174

  • Cause-and-Effect Diagrams

    Material(ball)

    Method(shooting process)

    Machine(hoop &

    backboard)

    Manpower(shooter)

    Missed free-throws

    Rim alignment

    Rim size

    Backboard stability

    Rim height

    Follow-through

    Hand position

    Aiming point

    Bend knees

    Balance

    Size of ball

    Lopsidedness

    Grain/Feel (grip)

    Air pressure

    Training

    Conditioning Motivation

    Concentration

    Consistency

    175

  • Pareto Charts

    Number of

    occurrences

    Room svc Check-in Pool hours Minibar Misc.72% 16% 5% 4% 3%

    12

    4 3 2

    54

    – 100

    – 93– 88

    – 72

    70 –

    60 –

    50 –

    40 –

    30 –

    20 –

    10 –

    0 –

    Fre

    qu

    en

    cy (

    nu

    mb

    er)

    Causes and percent of the total

    Cu

    mu

    lati

    ve p

    erc

    en

    t

    Data for October

    176

  • Flow Charts

    MRI Flowchart

    1. Physician schedules MRI2. Patient taken to MRI3. Patient signs in4. Patient is prepped5. Technician carries out MRI6. Technician inspects film

    7. If unsatisfactory, repeat8. Patient taken back to room9. MRI read by radiologist10. MRI report transferred to

    physician11. Patient and physician discuss

    11

    10

    20%

    9

    880%

    1 2 3 4 5 6 7

    177

  • Statistical Process Control (SPC)

    Uses statistics and control charts to tell when to take corrective action

    Drives process improvement

    Four key steps

    Measure the process

    When a change is indicated, find the assignable cause

    Eliminate or incorporate the cause

    Restart the revised process

    178

  • An SPC Chart

    Upper control limit

    Coach’s target value

    Lower control limit

    Game number

    | | | | | | | | |

    1 2 3 4 5 6 7 8 9

    20%

    10%

    0%

    Plots the percent of free throws missed

    179

  • Chapter 4

    • Quality and Productivity

    180

  • Quality & Productivity

    181

  • 182

    Quality Control

  • Significance Quality Control

  • 184

    Methods of Quality Control

  • 185

    Methods of Quality Control

  • 186

    Productivity

  • 187

    Dikkat

  • 188

    Significance

  • 189

    Measurement of Productivity

  • 190

    Örnek

  • 191

    Örnek

  • 192

    Örnek

  • 193

    Factors Influencing Productivity

  • 194

    Factors Influencing Productivity

  • 195

    Factors Influencing Productivity

  • 196

    Factors Influencing Productivity

  • Quality Management and Productivity

    Productivity

    – ratio of output to input Yield: a measure of productivity

    Yield=(total input)(% good units) + (total input)(1-%good units)(% reworked)

    or

    Y = (I) (%G) + (I) (1-%G) (%R)

    3-197

  • 198

    Yield=(total input)(% good units) + (total input)(1-%good units)(% reworked)

    or

    Y = (I) (%G) + (I) (1-%G) (%R)

  • 199

  • Product Cost

    Y

    RKIK rd ))(())(( Product Cost

    where:

    Kd = direct manufacturing cost per unit

    I = input

    Kr = rework cost per unit

    R = reworked units

    Y = yield

    200

  • 201

    Y

    RKIK rd ))(())(( Product Cost

    where:

    Kd = direct

    manufacturing cost per

    unit

    I = input

    Kr = rework cost per unit

    R = reworked units

    Y = yield

  • 202

  • Computing ProductYield for Multistage Processes

    Y = (I)(%g1)(%g2) … (%gn)

    where:

    I = input of items to the production process that will

    result in finished products

    gi = good-quality, work-in-process products at stage i

    203

  • 204

    Y = (I)(%g1)(%g2) … (%gn)

    where:

    I = input of items to the production process that will result in finished

    products

    gi = good-quality, work-in-process products at stage i

  • 205

  • Quality–Productivity Ratio

    QPR

    – productivity index that includes productivity and quality costs

    QPR =

    (non-defective units)

    (input) (processing cost) + (defective units) (reworked cost)

    206

  • 207

  • 208

    Örnek

  • 209

  • Chapter 5

    • Cost of Quality

    210

  • Cost of Quality

    211

  • Product Cost

    Y

    RKIK rd ))(())(( Product Cost

    where:

    Kd = direct manufacturing cost per unit

    I = input

    Kr = rework cost per unit

    R = reworked units

    Y = yield

    212

  • 213

  • 214

    The Challenger Disaster What Really Happened!

  • The Cost of poor Quality !

    215

  • Chernobyl Disaster What Really Happened

    216

    https://www.youtube.com/watch?v=BfKm0XXfiis

    https://www.youtube.com/watch?v=DOWD0CBxE7w

  • The Cost of poor Quality !

    217

  • The Cost of poor Quality !

    218

  • Cost of Quality

    Cost of Achieving Good QualityPrevention costs

    costs incurred during product design

    Appraisal costscosts of measuring, testing, and analyzing

    Cost of Poor Quality Internal failure costs

    include scrap, rework, process failure, downtime, andprice reductions

    External failure costs include complaints, returns, warranty claims, liability, and

    lost sales

    219

  • Cost of Quality

    1. Prevention costs

    2. Appraisal costs

    3. Internal failure costs

    4. External failure costs

    5. Opportunity costs

    220

  • Costs of Quality

    Prevention costs - reducing the potential fordefects

    Appraisal costs - evaluating products, parts, andservices

    Internal failure - producing defective parts orservice before delivery

    External costs - defects discovered afterdelivery

    221

  • External Failure

    Internal Failure

    Prevention

    Costs of Quality

    Appraisal

    Total

    Cost

    Quality Improvement

    Total Cost

    222

  • Prevention Costs Quality planning costs

    costs of developing and implementing quality managementprogram

    Product-design costs costs of designing products with quality characteristics

    Process costs costs expended to make sure productive process conforms to

    quality specifications

    Training costs costs of developing and putting on quality training programs for

    employees and management

    Information costs costs of acquiring and maintaining data related to quality, and

    development of reports on quality performance

    223

  • Appraisal Costs

    Inspection and testing costs of testing and inspecting materials, parts, and product

    at various stages and at the end of a process

    Test equipment costs costs of maintaining equipment used in testing quality

    characteristics of products

    Operator costs costs of time spent by operators to gar data for testing

    product quality, to make equipment adjustments to maintain quality, and to stop work to assess quality

    224

  • Internal Failure Costs Scrap costs

    costs of poor-quality products that must be discarded, includinglabor, material, and indirect costs

    Rework costs costs of fixing defective products to conform to quality

    specifications

    Process failure costs costs of determining why production process is producing poor-

    quality products

    Process downtime costs costs of shutting down productive process to fix problem

    Price-downgrading costs costs of discounting poor-quality products—that is, selling products

    as “seconds”

    225

  • External Failure Costs Customer complaint costs

    costs of investigating and satisfactorily responding to a customer complaint resulting from a poor-quality product

    Product return costs costs of handling and replacing poor-quality products returned by

    customer

    Warranty claims costs costs of complying with product warranties

    Product liability costs litigation costs resulting from product liability and customer

    injury

    Lost sales costs costs incurred because customers are dissatisfied with poor

    quality products and do not make additional purchases

    226

  • Measuring and Reporting Quality Costs

    Index numbers ratios that measure quality costs against a base value

    labor index– ratio of quality cost to labor hours

    cost index– ratio of quality cost to manufacturing cost

    sales index– ratio of quality cost to sales

    production index– ratio of quality cost to units of final product

    227

  • Quality–Cost Relationship

    Cost of qualityDifference between price of nonconformance

    and conformance

    Cost of doing things wrong20 to 35% of revenues

    Cost of doing things right3 to 4% of revenues

    Profitability In the long run, quality is free

    228

  • Quality-Related Costs

    Prevention costs activities to keep unacceptable products from being

    generated and to keep track of the process

    Appraisal costs activities to maintain control of the system

    Correction costs activities to correct conditions out of control, including

    errors

    229

  • Prevention Costs Quality planning and engineering New products review Product/process design Process control Burn-in Training Quality data acquisition and analysis

    230

  • Appraisal Costs

    Inspection and test of incoming material Product inspection and test Materials and services consumed Maintaining accuracy of test equipment

    231

  • Correction Costs

    1. Internal Failure Costs

    Scrap

    Rework

    Retest

    Failure analysis

    Downtime

    Yield losses

    Downgrading (off-specing)

    232

  • Correction Costs

    2. External Failure Costs

    Complaint adjustment

    Returned product/material

    Warranty charges

    Liability costs

    Indirect costs

    233

  • Chapter 6

    • Quality Awards and Setting Quality Standards

    234

  • 235

    Quality Awards

    • Deming Prize1951

    • Malcolm Baldrige Quality Award 1988

    • EFQM Quality Awards1992

    • National Quality Award (based on EFQM model)

    1993

  • Baldrige Award

    • Created in 1987 to stimulate growth of quality management in the United States

    • Categories Leadership Information and analysis Strategic planningHuman resource FocusProcess managementBusiness resultsCustomer and market focus

    236

  • Other Awards for Quality

    • National individual awards

    Armand V. FeigenbaumMedal

    Deming Medal

    E. Jack Lancaster Medal

    Edwards Medal

    Shewart Medal

    Ishikawa Medal

    • International awards

    European Quality Award

    Canadian Quality Award

    Australian Business Excellence Award

    Deming Prize from Japan

    237

  • www.iso.org

    International Organization for Standardization

    www.iso.org

    International Organization for Standardization

    238

  • Overview of ISO

    9001 and ISO 14001by Roger Frost

    e-mail [email protected]

    Manager, Communication Services

    2009-01-08

    239

  • ISO 9001 and ISO 14001 in brief

    • ISO 9001 and ISO 14001 are among ISO's most well known standards ever.

    • They are implemented by more than a millionorganizations in some 175 countries.

    • ISO 9001 helps organizations to implement quality management.

    • ISO 14001 helps organizations to implement environmental management.

    240

  • Quality Management

    • ISO 9001 is for quality management.

    • Quality refers to all those features of a product (or service) which are required by the customer.

    • Quality management means what the organization does to

    • ensure that its products or services satisfy the customer's quality requirements and

    • comply with any regulations applicable to those products or services.

    241

  • Quality management (cont.)

    • Quality management also means what the organization does to

    • enhance customer satisfaction, and

    • achieve continual improvement of its performance.

    242

  • Environmental management

    • ISO 14001 is for environmental management. This means what the organization does to:

    • minimize harmful effects on the environment caused by its activities,

    • to conform to applicable regulatory requirements, and to

    • achieve continual improvement of its environmental performance.

    243

  • Generic standards

    ISO 9001 and ISO 14001 are generic standards.Generic means that the same standards can be applied:

    • to any organization, large or small, whatever its product or service,

    • in any sector of activity, and• whether it is a business enterprise, a public

    administration, or a government department.

    244

  • Generic standards (cont.)

    Generic also signifies that

    • no matter what the organization's scope of activity

    • if it wants to establish a quality management system, ISO 9001 gives the essential features

    • or if it wants to establish an environmental management system, ISO 14001 gives the essential features.

    245

  • Management systems

    • Management system means what the organization does to manage its processes, or activities in order that

    • its products or services meet the organization’s objectives, such as

    • satisfying the customer's quality requirements,

    • complying to regulations, or

    • meeting environmental objectives

    246

  • Management systems

    • To be really efficient and effective, the organization can manage its way of doing things by systemizing it.

    • Nothing important is left out.

    • Everyone is clear about who is responsible for doing what, when, how, why and where.

    • Management system standards provide the organization with an international, state-of-the-art model to follow.

    247

  • Management systems (cont.)

    • Large organizations, or ones with complicated processes, could not function well without management systems.

    • Companies in such fields as aerospace, automobiles, defence, or health care devices have been operating management systems for years.

    • The ISO 9001 and ISO 14001 management system standards now make these successful practices available for all organizations.

    248

  • Processes, not products

    • Both ISO 9001 and ISO 14001 concern the way an organization goes about its work.

    • They are not product standards.

    • They are not service standards.

    • They are process standards.

    • They can be used by product manufacturers and service providers.

    249

  • Processes, not products (cont.)

    • Processes affect final products or services.

    • ISO 9001 gives the requirements for what the organization must do to manage processes affecting quality of its products and services.

    • ISO 14001 gives the requirements for what the organization must do to manage processes affecting the impact of its activities on the environment.

    250

  • Certification and registration

    • Certification is known in some countries as registration.

    • It means that an independent, external body has audited an organization's management system and verified that it conforms to the requirements specified in the standard (ISO 9001 or ISO 14001).

    • ISO does not carry out certification and does not issue or approve certificates

    251

  • Accreditation

    • Accreditation is like certification of the certification body.

    • It means the formal approval by a specialized body -an accreditation body - that a certification body is competent to carry out ISO 9001 or ISO 14001certification in specified business sectors.

    • Certificates issued by accredited certification bodies -and known as accredited certificates - may be perceived on the market as having increased credibility.

    • ISO does not carry out or approve accreditations.

    252

  • Certification not a requirement

    • Certification is not a requirement of ISO 9001 or ISO 14001.

    • The organization can implement and benefit from an ISO 9001 or ISO 14001 system without having it certified.

    • The organization can implement them for the internal benefits without spending money on a certification programme.

    253

  • Certification is a business decision

    • Certification is a decision to be taken for business reasons:

    • if it is a contractual, regulatory, or market requirement,

    • If it meets customer preferences

    • it is part of a risk management programme, or

    • if it will motivate staff by setting a clear goal.

    254

  • ISO does not certify

    • ISO does not carry out ISO 9001 or ISO 14001 certification.

    • ISO does not issue certificates.• ISO does not accredit, approve or control the

    certification bodies.• ISO develops standards and guides to encourage

    good practice in accreditation and certification.

    255

  • The ISO 9000 family

    • ISO 9001 is the standard that gives the requirementsfor a quality management system.

    • ISO 9001:2008 is the latest, improved version.

    • It is the only standard in the ISO 9000 family that canbe used for certification.

    • There are 16 other standards in the family that canhelp an organization on specific aspects such as performance improvement, auditing, training…

    256

  • The ISO 14000 family

    • ISO 14001 is the standard that gives the requirements for an environmental management system.

    • ISO 14001:2004 is the latest, improved version.

    • It is the only standard in the ISO 14000 family thatcan be used for certification.

    • The ISO 14000 family includes 21 other standardsthat can help an organization specific aspects such as auditing, environmental labelling, life cycle analysis…

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  • Benefits of ISO 9001 and ISO 14001

    • International, expert consensus on state-of-the-art practices for quality and environmental management

    • Common language for dealing with customers and suppliers worldwide

    • Increase efficiency and effectiveness

    • Model for continual improvement

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  • Benefits of ISO 9001 and ISO 14001 (cont.)

    • Model for satisfying customers and otherstakeholders

    • Build quality into products and services from design onwards

    • Address environmental concerns of customers and public, and comply with government regulations

    • Integrate with global economy

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  • Benefits of ISO 9001 and ISO 14001 (cont.)

    • Sustainable business

    • Unifying base for industry sectors

    • Qualify suppliers for global supply chains

    • Technical support for regulations

    260

  • Benefits of ISO 9001 and ISO 14001 (cont.)

    • Transfer of good practice to developing countries

    • Tools for new economic players

    • Regional integration

    • Facilitate rise of services

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  • More information

    • ISO 9000/ISO 14000 section on ISO Web site: www.iso.org

    • ISO Management Systems magazinewww.iso.org/ims

    • IMS Alerts free electronic newsletterwww.iso.org/imsalerts

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    http://www.iso.org/iso/home.htmhttp://www.iso.org/imshttp://www.iso.org/imsalerts

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    ISO 9000 and TQM

    Satisfaction needs

    FundamentalsISO 9000

    Industrial /

    technological

    needs

    Requirements for

    competition

    Integration

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    EFQM Excellence Model

  • EFQM Award Winners From Turkey

    1996 Brisa

    Netaş

    1997 Beksa

    1998 BEKO

    2000 Arçelik

    Vitra

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    Common Characteristics of EFQM Award Winners

    The way they look at reasons of doing business radically

    Different approach to business performance measurement

    Advanced use of quality tools

    Breakthrough techniques

    Superior leadership and policy deployment

    Understanding how these produce superior business results

    Continuous self-assessment / improvement

    Fact based management on a defined set of performance indicators

    Source: John Kelly, Manager, European Quality Journal, 1999